1. PharmaSim COMPETITIVE STRATEGY
Advanced Marketing Management
Marketing 6202

2. Competitive Strategy What is Strategy?
Multi Functional activities that support corporate goals by delivering superior customer value
What is Customer Value?
Customer Value = Benefits - Costs

3. Competitive Strategy Approaches
Deliberate
Realized actions match intended course
Emergent
Strategy is identified from patterns or consistencies in past behavior
Intended course may be changed

4. Competitive Strategy Situation Analysis
Demand-How/why do consumers buy?
Population and segment
Channels
Usage rates
Environment
Health issues and symptoms
Economic-e.g. inflation
Information Sources
SURVEY – Decision Criteria
SURVEY – Tradeoffs
SURVEY – Brand Awareness
SURVEY – Purchase Intentions
SURVEY – Brand Perceptions
MARKET – Shopping Habits
MARKET – Share of Channel Sales
MARKET – Symptoms Reported

5. Competitive Strategy Situation Analysis
Performance
Market share
Costs, resource allocation
Margins
Products
How do consumers view them?
New products?
Marketing programs
Price
Promotion
Distribution
Information Sources
MARKET – Share of Mfgr Sales
MARKET – Share of Channel Sales
SURVEY – Brands Purchased
MARKET – Brand Formulations
MARKET – Operating Statistics
MARKET – Sales Force
MARKET – Advertising
MARKET – Promotion

6. Competitive Strategy Situation Analysis
SWOT
Internal
Strengths
Weaknesses
External
Opportunities
Threats
Focus on trends – How are things changing?

7. Competitive Strategy Problems and Opportunities
Financial performance
Competitor actions
Product usage and perceptions
Marketing Mix
Opportunities
Fragmenting market
Submarket/segment growth
Financial resources
Information Sources
SURVEY – Decision Criteria
SURVEY – Tradeoffs
SURVEY – Brand Awareness
SURVEY – Purchase Intentions
SURVEY – Brand Perceptions
SURVEY – Segmented Reports
MARKET – Symptoms Reported
MARKET – Shopping Habits
MARKET – Brand Formulations
MARKET – Operating Statistics
COMPANY–Product Contributions

8. Competitive Strategy Problems and Opportunities
Segmentation
Identify subgroups in the market that act the same
Develop profiles of the segments
Targeting
Determine segment attractiveness
Consider “fit” with products and its benefits
Select segment to target
Positioning
Develop marketing mix to appeal to each target segment

9. Competitive Strategy Evaluate Alternatives
Does the alternative support your performance objectives?
e.g. Build market share, dominate new segments, increase profits, increase distribution in a particular channel
Develop marketing mix for the alternative
Product decisions Sales force
Channels of Distribution Advertising
Pricing Promotions
Can the alternative be implemented within your budget constraints?

10. Competitive Strategy Evaluate Alternatives
Competitive Response
What should they be expected to do in response to our alternatives?
Match
Cut price
Exploit their strengths
Be mindful of competitor’s capabilities and…
Pick the battleground, if you can

11. Competitive Strategy MONITOR RESULTS
Financial and market performance
Performance is driven by the ability to fulfill customer needs and wants, relative to the competition

12. Competitive Strategy MONITOR RESULTS
Try to learn consumer response
by measuring the outcome variables
Helps in determining resource allocation

13. Competitive Strategy MONITOR RESULTS
The longer you go, the more you know
Signal vs. noise
Don’t “fight the last war”
Things may change!

14. Competitive Strategy ISSUES
New product development – a long term key
Match the marketing mix to the target customer
Don’t forget about price sensitivity
To stay ahead, you must continue to get better

15. Competitive Strategy Situation Analysis
Demand-How/why do consumers buy?
Population and segment
Channels
Usage rates
Environment
Health issues and symptoms
Economic-e.g. inflation
Information Sources
SURVEY – Decision Criteria
SURVEY – Tradeoffs
SURVEY – Brand Awareness
SURVEY – Purchase Intentions
SURVEY – Brand Perceptions
MARKET – Shopping Habits
MARKET – Share of Channel Sales
MARKET – Symptoms Reported